Wash and dice the potatoes, leaving the skin on.
Boil the potatoes until a fork can smoothly pierce the pieces (be sure not to over-boil to a mush). I boiled my potatoes for about 12 minutes before they were ready.
Once finished, drain and let cool.
While your potatoes are boiling, place the butter in a small pan over medium-high heat.
Cook the onion until brown, about five minutes.
Finely chop the red bell pepper (1 cm. pieces or smaller).
In a large bowl, whisk the sour cream, mayo, rice vinegar, mustard, salt, pepper, and dill until smooth.
Add the onion, bell pepper, and room temperature potatoes.
Evenly coat with the creamy mixture.
Once combined, mix in the shredded cheese.
The potato salad is delicious warm, but even better chilled.